Types of Taxes

Front

What is Sales Tax?

Back

A tax imposed on the sale of goods and services, typically calculated as a percentage of the purchase price.

Front

What is Income Tax?

Back

A tax levied on the income earned by individuals and businesses, usually calculated as a percentage of the income.

Front

What is Payroll Tax?

Back

A tax that employers withhold from employees' wages to fund social security and Medicare.

Front

What is Property Tax?

Back

A tax based on the value of owned property, typically assessed by local governments.

Front

What is a Progressive Tax System?

Back

A tax system where the tax rate increases as the taxable amount increases, meaning higher earners pay a higher percentage.

Front

What is a Regressive Tax System?

Back

A tax system where the tax rate decreases as the taxable amount increases, meaning lower earners pay a higher percentage of their income.

Front

What is a Proportional Tax System?

Back

A tax system where the tax rate remains constant regardless of the amount subject to tax.

Front

How do taxes affect take-home pay?

Back

Taxes reduce the amount of money an employee receives in their paycheck, resulting in lower take-home pay.

Front

Calculate the final cost of an item priced at $850 with a sales tax of 11%.

Back

Final cost = $850 + ($850 * 0.11) = $943.50.

Front

What is the purpose of taxes?

Back

To fund government services and programs, including education, infrastructure, and public safety.